Question 1

The efforts to revive the economy in 2009 through 2011 were drawn from

Accepted Answer

A) the traditional tools of monetary policy. 
B) new tools of monetary policy. 
C) discretionary fiscal policy. 
D) all of the options are correct. 
A) the traditional tools of monetary policy. 
B) new tools of monetary policy. 
C) discretionary fiscal policy. 
D) all of the options are correct.

Question 2

The stimulus package proposed by the Bush Administration in early 2008 relied upon

Accepted Answer

A) a permanent increase in personal income tax rates. 
B) a temporary surtax added to existing personal income tax rates. 
C) making permanent the 2003 income tax rate cuts, as well as tax rebates to taxpayers. 
D) a requirement that any children claimed as dependents have social security numbers. 
A) a permanent increase in personal income tax rates. 
B) a temporary surtax added to existing personal income tax rates. 
C) making permanent the 2003 income tax rate cuts, as well as tax rebates to taxpayers. 
D) a requirement that any children claimed as dependents have social security numbers.

Question 3

If an adverse shock reduces the level of aggregate demand, it is likely to lead to

Accepted Answer

A) lower Real GDP ("RGDP")and a higher price level ("PI"). 
B) higher Real GDP ("RGDP")and a higher price level ("PI"). 
C) lower Real GDP ("RGDP")and a lower price level ("PI"). 
D) higher Real GDP ("RGDP")and a lower price level ("PI"). 
A) lower Real GDP ("RGDP")and a higher price level ("PI"). 
B) higher Real GDP ("RGDP")and a higher price level ("PI"). 
C) lower Real GDP ("RGDP")and a lower price level ("PI"). 
D) higher Real GDP ("RGDP")and a lower price level ("PI").

Question 4

As the U.S. recession was developing in the summer of 2008, oil prices peaked near

Accepted Answer

A) $30 per barrel. 
B) $60 per barrel. 
C) $110 per barrel. 
D) $140 per barrel. 
A) $30 per barrel. 
B) $60 per barrel. 
C) $110 per barrel. 
D) $140 per barrel.

Question 5

The stimulus package implemented by the Bush Administration in 2008 included

Accepted Answer

A) rebates to individual taxpayers of $600 per individual and $1200 per married couple. 
B) rebates to individual taxpayers of $600 per individual and $900 per married couple. 
C) rebates to individual taxpayers of $900 per individual and $600 per married couple. 
D) no rebates of any kind to individual taxpayers, only corporations. 
A) rebates to individual taxpayers of $600 per individual and $1200 per married couple. 
B) rebates to individual taxpayers of $600 per individual and $900 per married couple. 
C) rebates to individual taxpayers of $900 per individual and $600 per married couple. 
D) no rebates of any kind to individual taxpayers, only corporations.

Question 6

QE2 was an effort to revive the economy in 2010 and 2011. It relied on

Accepted Answer

A) the traditional tools of monetary policy. 
B) new tools of monetary policy. 
C) discretionary fiscal policy. 
D) all of the options are correct. 
A) the traditional tools of monetary policy. 
B) new tools of monetary policy. 
C) discretionary fiscal policy. 
D) all of the options are correct.

Question 7

Monetary policy designed to counteract a reduction in aggregate demand might include

Accepted Answer

A) an increase in the money stock. 
B) a sharp increase in short-term interest rates. 
C) increased government infrastructure spending. 
D) an increase in individual income tax rates. 
A) an increase in the money stock. 
B) a sharp increase in short-term interest rates. 
C) increased government infrastructure spending. 
D) an increase in individual income tax rates.

Question 8

The efforts to revive the economy in 2009 through the stimulus package is an example of

Accepted Answer

A) the traditional tools of monetary policy. 
B) new tools of monetary policy. 
C) discretionary fiscal policy. 
D) all of the options are correct. 
A) the traditional tools of monetary policy. 
B) new tools of monetary policy. 
C) discretionary fiscal policy. 
D) all of the options are correct.

Question 9

Monetary policy designed to counteract a reduction in aggregate demand might include

Accepted Answer

A) a reduction in the money stock. 
B) a reduction in short-term interest rates. 
C) increased government infrastructure spending. 
D) an increase in individual income tax rates. 
A) a reduction in the money stock. 
B) a reduction in short-term interest rates. 
C) increased government infrastructure spending. 
D) an increase in individual income tax rates.

Question 10

A factor that might have contributed to the weakening of the U.S. economy in 2007-2009 was

Accepted Answer

A) increases by the Federal Reserve in its target short-term interest rate. 
B) rapid growth of the money stock. 
C) the unexpected return to the gold standard. 
D) rising levels of federal government spending. 
A) increases by the Federal Reserve in its target short-term interest rate. 
B) rapid growth of the money stock. 
C) the unexpected return to the gold standard. 
D) rising levels of federal government spending.

Question 11

The elements of the stimulus package adopted in 2009 that allowed states to pay Medicaid providers despite having exhausted their funds should be considered

Accepted Answer

A) discretionary fiscal policy. 
B) non-discretionary fiscal policy. 
C) monetary policy. 
D) neither discretionary nor non-discretionary fiscal policy programs. 
A) discretionary fiscal policy. 
B) non-discretionary fiscal policy. 
C) monetary policy. 
D) neither discretionary nor non-discretionary fiscal policy programs.

Question 12

Discretionary fiscal policies that increase aggregate demand tend to result in

Accepted Answer

A) lower Real GDP ("RGDP")and a higher price level ("PI"). 
B) higher Real GDP ("RGDP")and a higher price level ("PI"). 
C) lower Real GDP ("RGDP")and a lower price level ("PI"). 
D) higher Real GDP ("RGDP")and a lower price level ("PI"). 
A) lower Real GDP ("RGDP")and a higher price level ("PI"). 
B) higher Real GDP ("RGDP")and a higher price level ("PI"). 
C) lower Real GDP ("RGDP")and a lower price level ("PI"). 
D) higher Real GDP ("RGDP")and a lower price level ("PI").

Question 13

The Federal Reserve is blamed by some for the recession of 2007-2009 because it

Accepted Answer

A) raised interest rates too fast in 2005-2007. 
B) lowered interest rates too fast in 2008. 
C) kept interest rates high in 2005-2007. 
D) kept interest rates too low prior to 2005 leading to a housing boom (that ultimately went bust. 
A) raised interest rates too fast in 2005-2007. 
B) lowered interest rates too fast in 2008. 
C) kept interest rates high in 2005-2007. 
D) kept interest rates too low prior to 2005 leading to a housing boom (that ultimately went bust.

Question 14

Housing prices peaked

Accepted Answer

A) right as the recession began in December 2007. 
B) after the recession began in December 2007. 
C) before the recession of 2007-2009 began. 
D) In 1999 
A) right as the recession began in December 2007. 
B) after the recession began in December 2007. 
C) before the recession of 2007-2009 began. 
D) In 1999

Question 15

The beginning date of the recession of 2007-2009 has been determined by the

Accepted Answer

A) Board of Governors of the Federal Reserve System. 
B) National Bureau of Economic Research. 
C) University Interscholastic League. 
D) Council on Foreign Relations. 
A) Board of Governors of the Federal Reserve System. 
B) National Bureau of Economic Research. 
C) University Interscholastic League. 
D) Council on Foreign Relations.

Question 16

The stimulus package proposed in 2009 by newly-elected President Obama included

Accepted Answer

A) reduced income tax rates for high-income individuals. 
B) reduced levels of federal government aid to state and local governments. 
C) a combination of tax changes and significant increases in federal government spending. 
D) rapid contraction of the overall size of the federal government as a share of GDP. 
A) reduced income tax rates for high-income individuals. 
B) reduced levels of federal government aid to state and local governments. 
C) a combination of tax changes and significant increases in federal government spending. 
D) rapid contraction of the overall size of the federal government as a share of GDP.

Question 17

In the recession of 2007-2009, the Net Change in Employment was

Accepted Answer

A) positive during every month of 2006 and 2007. 
B) positive during every month of 2007. 
C) negative during every month of 2007. 
D) negative during every month of 2008. 
A) positive during every month of 2006 and 2007. 
B) positive during every month of 2007. 
C) negative during every month of 2007. 
D) negative during every month of 2008.

Exam 14: The Recession of 2007-2009: Causes and Policy Responses

The efforts to revive the economy in 2009 through 2011 were drawn from

The stimulus package proposed by the Bush Administration in early 2008 relied upon

If an adverse shock reduces the level of aggregate demand, it is likely to lead to

As the U.S. recession was developing in the summer of 2008, oil prices peaked near

The stimulus package implemented by the Bush Administration in 2008 included

QE2 was an effort to revive the economy in 2010 and 2011. It relied on

Monetary policy designed to counteract a reduction in aggregate demand might include

The efforts to revive the economy in 2009 through the stimulus package is an example of

Monetary policy designed to counteract a reduction in aggregate demand might include

A factor that might have contributed to the weakening of the U.S. economy in 2007-2009 was

The elements of the stimulus package adopted in 2009 that allowed states to pay Medicaid providers despite having exhausted their funds should be considered

Discretionary fiscal policies that increase aggregate demand tend to result in

The Federal Reserve is blamed by some for the recession of 2007-2009 because it

Housing prices peaked

The beginning date of the recession of 2007-2009 has been determined by the

The stimulus package proposed in 2009 by newly-elected President Obama included

In the recession of 2007-2009, the Net Change in Employment was

Economics: the Study of Opportunity Cost

Supply and Demand

The Concept of Elasticity and Consumer and Producer Surplus

Firm Production, Cost, and Revenue

Perfect Competition, Monopoly, and Economic Versus Normal Profit

Every Macroeconomic Word You Ever Heard: Gross Domestic Product, Inflation, Unemployment, Recession, Depression

Interest Rates and Present Value

Aggregate Demand and Aggregate Supply

Fiscal Policy

Monetary Policy

Federal Spending

Federal Deficits, Surpluses, and the National Debt

The Housing Bubble

Is Economic Stagnation the New Normal

Is the Fiscalsky Falling: An Examination of Unfunded Social Security, Medicare, and State and Local Pension Liabilities

International Trade: Does It Jeopardize American Jobs

International Finance and Exchange Rates

The European Debt Crisis

Economic Growth and Development

Nafta, Gatt, Wto: Are Trade Agreements Good for Us

The Line Between Legal and Illegal Goods

Natural Resources, the Environment, and Climate Change

Health Care

Government-Provided Health Insurance: Medicaid, Medicare, and the Child Health Insurance Program

The Economics of Prescription Drugs

So You Want to Be a Lawyer: Economics and the Law

The Economics of Crime

Antitrust

The Economics of Race and Discrimination

Income and Wealth Inequality

Farm Policy

Minimum Wage

Ticket Brokers and Ticket Scalping

Rent Control

Economics of K-12 Education

Economics of College and University Education

Poverty and Welfare

Head Start

Social Security

Personal Income Taxes

Energy Prices

If We Build It, Will They Come and Other Sports Questions

The Stock Market Crashes

Unions

Walmart: Always Low Prices and Low Wages- Always

The Economic Impact of Casino Gambling

The Economics of Terrorism

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